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Friday, September 3, 2010

The Ayala Corporation Breakout!

Hello stock traders! It's been a while since I last posted on Ayala Corporation or AC in the Philippine Stock Exchange. If you want to check my post three months ago, kindly check here. As you could see, it took 5 months for the Ayala Corporation stocks to setup the triangle formation that could trigger the break above the 355.00-357.50 peso 2-year resistance area. Fortunately, it did on September 2 which is just yesterday (indicated by the yellow circle). Right now, the Ayala stocks could further head up but could encounter some selling pressure at the 400.00 peso psychological area which I also consider a resistance. However, if the stocks move past above the 400.00 peso marker, the next resistance could be 422.50 pesos. On the downside, in case the stocks start to drop, it could bounce off the 355.00-357.50 peso resistance-turned-support. If it slips and slides below that area, the next support could be the 7-month uptrend.

Yesterday, the US reported a great news on their Pending Home Sales data as it turned out to be positive. Currently, they also reported a stability on the unemployment rate which triggered the Dow Jones Industrial Average and the other major indices to stay on the bullish territory, well at least for now. Since the US market's with the bulls right now, the Philippine market will most likely be as well on the coming Monday trading session. Good news for the blues!  Happy weekend guys, cheers!

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